Executive Summary
True disruption, becoming real
- Discount the hyperbolic hype, and blockchain is still a game changing technology that will progress from business simplification to radical new revenue stream creation in 3-5 years
- On average, the number of active blockchain clients nearly tripled for blockchain services providers in last twelve months
2019: the year blockchain comes alive
- As enterprise-grade distributed ledger platforms matured, nearly a quarter of active blockchain projects entered the pilot stage
- These pilot projects will be assessed for business value in the next 18 months, and a number of these will reach the next stage of enterprise production
Expanding industry base and use cases
- Banking, financial services and manufacturing, with nearly a 60% contribution to blockchain services revenue, are the adoption pioneers
- A deluge of use cases are emerging in retail and CPG, insurance, government, utilities and resources and healthcare and life sciences
Talent crunch and integration inexperience
- With less than 6% projects currently in implementation, there is limited availability of talent with real world enterprise grade integration experience
- Service providers are starting to ramp up skills in this area through creative hiring and upskilling of internal resources
Permissioned blockchain is set to accelerate
- Permissioned blockchains will emerge as the blockchain of choice for enterprises because of their governance, performance and scalability advantages
- Over 2.5 times increase in membership in key permissioned blockchain consortiums in the last 12 months, which will continue moving forward
Convergence with other emerging technologies
- Enterprises will harness the multiplier effect of blockchain by using it in conjunction with other technologies, such as internet of things and artificial intelligence
- Enterprises and core technology providers are already filing patents for technologies at the intersection of blockchain and internet of things
Provider landscape will align to enterprise adoption
- Enterprise-grade blockchain-as-a-service solutions will emerge as the standard for blockchain development and deployment
- Market will lean towards providers with enterprise experience as the associated change management challenges get revealed during production
New regulations and standards
- As blockchain disrupts business models, regulatory and standards bodies will play an increasingly important role in providing clear, growth-oriented frameworks
- Enterprises are already building lobbying teams for blockchain policy development to work with regulatory bodies
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